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I don't think I have any red blinking light, but my car DOES have an immobilizer that makes it almost completely impossible to start without a properly programmed key...it's still really easy to tow away, though

Its a system similiar to GM's PASSKEY system. As mentioned, its a coded key that if you try using an unauthorized/programmed copy, the car will not start. Infact, if you do not use the proper key to start the car, it'll shut your fuel pump off.

Now, there are modules available/ways to bypass the system. These modules are readily available since the system can be incompatable with certain aftermarket addons such as remote starters...etc. Another trick some use is to keep an ignition switch with a programmed key under the dash to fool the car into thinking it has the key in.

Re: Best place to hide a GPS tracking device in your car?

The GPS tracker I have is called "Trackimo"

I have seen people put trackers most of the time on bumpers and even under the wheel well in some videos (would be okay I guess if waterproof). Also there are some really cool places I never thought of to place the tracker. Like inside of a seat that might have a remove-able cover.